Brazil: Economic activity increases at fastest pace in 15 months
September 10, 2012
In June, economic activity rose 0.7% over the previous month in seasonally adjusted terms, according to the Central Bank's monthly indicator for economic activity (IBC-Br, Indice de Atividade Economica do Banco Central). The figure was above both the flat reading observed in May and market expectations of a 0.5% increase. In fact, economic activity expanded at the fastest pace seen since March 2011. On an annual basis, economic activity rose 1.0% in June, which was slightly below the 1.1% increase observed in May. Moreover, the trend continues to point downwards, with annual average growth falling from 1.4% in May to 1.2% in June. The IBC-Br is highly correlated to the GDP series and thus represents a good proxy for economic growth.